The ROI of installing checkpoint systems for retail theft prevention is dramatic over time and better yet is realized very quickly.
Let’s suppose we have a clothing boutique with annual revenues of $1mil. Typically these smaller retailers are highly susceptible to shoplifting and employee theft losses due to low staffing levels. Many times we see these boutiques being operated by only one person. This makes controlling shoplifting very difficult when there are more than a couple customers present.
Retailers like this with $1mil in annual revenues will often have inventory shrink rates of over five percent, but let’s say they have good loss prevention processes in place and they only have a shrinkage of 2%. If they are doing average with management they are seeing a net profit of around 2% as well.
In this scenario, utilizing checkpoint systems for retail theft prevention will cut the inventory shrinkage in half at least. So that takes losses from $20,000 annually to $10,000 annually. That extra $10,000 transfers directly over to the profit margin. So the original $20,000 in profit margin jumps to $30,000…that is an increase of fifty percent in net profit margin!
And the average clothing boutique retailer likely only has one door into / out of the store. One set of checkpoint antennas will protect the store, and not including install or checkpoint labels / checkpoint security tags the antennas cost Between $1,700 and $2,700 per pair new with warranty.
Based on $2,700 the ROI in this case would be in less than three months, after that the checkpoint systems is a money maker!
For more info visit: checkpoint systems / retail theft prevention
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